Madhes plans to increase GDP through expansion of economic activities, what is being done?

लगानी न्यूज

३ श्रावण २०८३, आईतवार १२:४६July 19, 2026

Janakpurdham. In order to increase the contribution of Madhes Province to the Gross Domestic Product (GDP) by around 13 percent, the provincial government has started works accordingly, keeping economic activities expansion, production increment and private sector investment encouragement in priority.

} The government has forwarded programmes for the expansion of productive sector, industrialization and investment promotion with the conclusion that the economic potential of the province has not been fully utilized despite having abundant potentials of natural resources, fertile agricultural land, abundant labor force and cross-border trade.

Secretary at the Ministry of Industry, Commerce and Tourism of Madhes Province, Jaya Kumar Ghimire said that the province has laid special emphasis on tourism promotion along with the expansion of productive sector to increase the GDP of the province.TAG_OPEN_div_41

“We have given priority to increasing investment in industry, trade and service sector in the province,” he said, adding, “Although budget was allocated for the last fiscal year 2082/83, it could not be organized due to various reasons.”TAG_OPEN_div_39 The GDP of the province cannot be significantly increased unless adequate investment is brought in industry and business. Therefore, we have planned to organize the investment summit in the current fiscal year 2083/84. ”

According to him, programs will also be conducted to identify, upgrade and attract more tourists in the state.TAG_OPEN_div_37 Likewise, the government has prioritized the development of industrial infrastructures, establishment of agro products-based industries, promotion of small and medium enterprises, management of border trade and administrative facilitation to investors. He said that the province government has set the target of expanding economic activities through agricultural modernization, expansion of irrigation, industrial village and industrial area, tourism promotion, management of border trade, creation of investment-friendly legal environment and partnership with the private sector.

Former Vice-Chairman of the Madhes Province Policy and Planning Commission, Dr Bhogendra Jha, said that programmes like the Investment Summit would play a positive role in creating environment conducive for investment in the province.TAG_OPEN_div_35 He underscored the need of converting investment commitment into real projects, simplifying legal and administrative procedures for operation of industries and regular dialogue with the private sector.

Stating that Madhes Province contributes around TAG_OPEN_div_33 13 per cent to the national GDP, he said the economic size of the province could not be increased without the expansion of production, industry, trade and service sector.

“Expansion of economic activities is the basis of economic prosperity of the province,” he said, adding that the GDP of Madhes could be significantly increased if industries were established, commercialization of agricultural products, investment-friendly environment and private sector participation increased.TAG_OPEN_div_31 ”

According to the ‘Report on Economic Activities of Madhes Province’ released by Nepal Rastra Bank in November last year, the national GDP in the fiscal year 2081/82 is estimated to be Rs 61.07 billion in consumer prices while the GDP of Madhes Province is estimated to be Rs 804 billion.TAG_OPEN_div_29 Madhes Province’s economic growth is projected to grow by 3.88 percent against the projected growth of 3.99 percent in the same period.

According to the report, the contribution of agriculture, forestry and fisheries to the economy of Madhes Province is the highest at 36.70 percent, while the mining and quarrying sector is the lowest at 0.15 percent.TAG_OPEN_div_27 The per capita GDP of the province is estimated to reach US$ 932 in the fiscal year 2081/82.

According to the report, the production of food and other crops has increased by 14.01 percent and the production of vegetables and horticulture by 9.79 percent.TAG_OPEN_div_25 Likewise, the production of milk, egg and fish increased by 3.16 per cent, 9.64 per cent and 5.95 per cent respectively in the review period. However, there has been a slight decline in the production of fruits, spices and meat, the report said.

The NRB has prepared the report based on the data of economic activities carried out in Saptari, Siraha, Dhanusha, Mahottari, Sarlahi, Rautahat, Bara and Parsa in the fiscal year 2081/82.TAG_OPEN_div_23 The report discusses the status, challenges and prospects of key sectors related to agriculture, industry, services and infrastructure development. Overall economic condition of the province and outlook for the upcoming fiscal year have been presented based on the data collected from government offices, related projects and industries as well as conclusions drawn from the survey and interaction with stakeholders.